Analyst Sanford C Bernstein & Co pointed that like-for-like sales of LVMH Moët Hennessy Louis Vuitton fell by 38 per cent to $9.2 billion from April to June and by 27 per cent to $21.6 billion during the six month period of January-June 2020. The company’s net profit plummeted by 84 percent to $613 million due to the difficulties it faced in cutting costs, said Wall Street Journal. Hit by COVID-19-related store closures across the globe and by significantly decreased travel retail sales, LVMH reported lower revenues in United States and Europe during the quarter and first half.

LVMH’s Fashion & Leather Goods business recorded a 24 per cent decline in revenue in the first half of 2020, while Perfumes & Cosmetics and Watches & Jewelry saw respective drops of 29 and 39 per cent for the half year period. Despite the pandemic, Dior showed remarkable resilience, confirming its exceptional appeal and gaining market share in all regions. Louis Vuitton was also able to very quickly transform and boost its customer relationships with a unique, high-quality and highly effective digital clientele strategy.

LVMH plans to focus on its own e-commerce platform rather than on third party distribution channels.